Raising Virginia's Minimum Wage?

Tim Kaine has joined Jim Webb and others in calling for an increase in the minimum wage.

The state might raise its own minimum wage if the federal government does not increase the national minimum wage from $5.15 an hour. "If the federal government doesn't, I think there is a role for the state to consider it," Kaine said.

Free Enterprise Watch opposes Virginia raising it's minimum wage above the federal level for several reasons. First, it's bad economics. Last year, only 2.5 percent of all hourly-paid workers in the United States were paid at or below the federal minimum wage. Entry-level workers who begin their careers at the minimum wage typically experience the fastest growth of all hourly-paid workers in the United States were paid at or below the federal minimum wage.

When minimum wage workers receive a statutorily-mandated raise, hourly employees making $7, $8 and $9 will also demand wage increases. This puts significant stress and strain on businesses, particularly small business owners.

Second, if Virginia were to raise the minimum wage above the federal level, it would serve as a disincentive for businesses to grow and stay in the Commonwealth. Some of our neighbors, including West Virginia and Maryland have higher hourly minimum wages than the federal rate.

Free Enterprise Watch believes it is in our shared interest to keep Virginia's minimum wage on an equal footing with the national level as it would sustain our economic advantages in attracting and retaining businesses, which in turn create jobs and grow the economy.